Cyprus rejects development plan for Chevron-led gas field - OFFSHORE TECHNOLOGY

August 28, 2023

Cyprus has rejected development plan submitted by a Chevron-led consortium for the Aphrodite gas field located in Block 12 of the exclusive economic zone of Cyprus, reported Bloomberg News citing the country’s Energy Minister Giorgos Papanastasiou.

The Aphrodite field, which was discovered in 2011, is located 160km south of Limassol and 30km northwest of the Leviathan field.

Without disclosing the reason for turning down the plan, Papanastasiou told the news agency that the project parties can now “enter into discussions to reach an agreement within a period of 30 days”, effective from 25 August 2023.

Chevron holds 35% stake in the field while other partners include Shell (35%) and Israel’s NewMed Energy (30%).

Aphrodite appraisal drill looks good - FINANCIAL MIRROR

17 JULY 2023

The drilling of an appraisal well at the offshore Aphrodite natural gas field was successfully completed with positive signs of undersea riches, said Energy Minister George Papanastasiou.

He told journalists Monday that the drilling of the A3 appraisal well was completed on July 13, and there were some initial but unofficial remarks.

He added that the appraisal well was drilled in the centre of the gas deposit to confirm natural gas quantities and quality after two previous appraisal drillings, one to the east and the other to the west.

Papanastasiou said there might be something newer, which will be evaluated, as regards the quality of the natural gas, “but it seems that it’s positive news”.

He said that while the drilling was confirmative, it was carried out at a depth which, with little intervention, could also be considered a development drilling.

Aphrodite gasfield has certainly resurfaced - CYPRUS MAIL

George Papanastasiou, Cyprus' Energy Minister

June 12, 2023
Dr Charles Ellinas

Despite challenges, the latest plans for the development of Aphrodite are more serious and realistic

Aphrodite is back in the limelight. On May 31 NewMed submitted an updated development plan to Cyprus’ government, on behalf of the field joint venture (JV) that includes Chevron as the operator and partner Shell. This is based on transporting the gas to Shell’s West Delta Deep Marine (WDDM) existing processing and production facilities offshore Egypt, from where it will be transported to the mainland eventually for domestic consumption or for export as LNG. First gas is expected by 2028.

This goes against George Papanastasiou’s, the energy minister, wishes for the Aphrodite partners to prioritise supply of gas to the island. In April he said that he didn’t think that gas from the Aphrodite gasfield should end up in Egypt’s liquefaction terminals.

“Our approach around the use of natural gas as a transition fuel is being reviewed and we are including the natural gas found in the East Med, and more specifically Cyprus’ EEZ, in the mix for use in the domestic market,” he said.

Israel’s NewMed and partners to connect the Aphrodite gas field off Cyprus to Egypt - THE TIMES OF ISRAEL

31 May 2023, 3:02 pm
Sharon Wrobel

Partners in the Aphrodite natural gas field offshore Cyprus, which include Israel’s NewMed Energy, announced on Wednesday that they were seeking approval from the Cypriot government to build a subsea pipeline that will connect the field to an existing processing and production facility in Egypt.

Israel’s NewMed Energy, formerly Delek Drilling (part of Yitzhak Tshuva’s Delek Group), which owns a 30% stake in the Aphrodite field located in Cypriot waters, said it had presented the Cypriot government with an updated plan for the development of the reservoir, including natural gas processing and production. For this purpose, the Aphrodite partners met with the Cypriot energy minister on Monday to discuss the progress of the development of the reservoir.

The other partners in the Aphrodite gas field, which holds an estimated 124 billion cubic meters of gas, are US energy giant Chevron and Shell, which each own a 35% share.

Aphrodite low on list of Chevron’s gas plans for East Med - CYPRUS MAIL

March 6, 2023

Dr. Charles Ellinas

The importance of the East Med to Chevron’s gas plans was made clear at the company’s ‘2022 4Q Earnings Conference Call’ on January 27 and subsequently at its ‘Investor Presentation’ on February 28. Mike Wirth, Chevron’s CEO, confirmed that he considers the region to be of “high priority”.

He specifically referred to the $673 million ‘Final Investment Decision’ (FID) taken in December 2022 to expand Tamar gasfield production capacity in Israel from 11billion cubic metres per year (bcm/yr) to 16bcm/yr, expected to come online in early 2025. This will enable Tamar to meet Israel’s growing domestic demand and increase gas deliveries to Egypt.

Following the Tamar FID, Chevron and its partners approved close to $100m budget for the development of Phase 1B of the Leviathan gasfield. This includes pre-FEED engineering for field expansion, including construction of a 4.6million tonnes/yr floating LNG (FLNG) facility, three years after FID. The expansion will increase production capacity to 21bcm/yr from 12bcm/yr now.

Cyprus, Israel pledge quick deal in gas field dispute - KATHIMERINI

19.09.2022 • 19:30
MENELAOS HADJICOSTIS

Israel and Cyprus said Monday that they have made “significant” headway in resolving a long-running dispute over an offshore natural gas deposit and say they are committed to quickly reaching a deal as Europe looks for new energy sources.

Cyprus Energy Minister Natasa Pilides and her Israeli counterpart, Karine Elharrar, held talks in the Cypriot capital, pledging to press toward a “fair and swift resolution.”

Israel claims that a portion of Cyprus’ Aphrodite deposit estimated to hold some 4.4 trillion cubic feet of natural gas falls inside its nearby Ishai field, along an offshore demarcation line that separates the two countries’ exclusive economic zones.

Negotiations have stretched for several years, but Europe’s need to wean itself off Russian energy sources since the war in Ukraine appears to have added a new sense of urgency to the talks. Russia has cut back natural gas supplies to Europe, driving up prices.

Partners in Cyprus' Aphrodite gas field approve $192 mln investment - REUTERS

JERUSALEM, Sept 18 (Reuters) - The partners in the Aphrodite gas field in Cypriot waters have approved a $192 million investment to begin drilling and to cover other development costs for the offshore project, Israeli firm NewMed Energy (NWMDp.TA) said on Sunday.

Most of the investment is for drilling a well that will first confirm the size of the gas deposit, estimated to be 124 billion cubic metres, and then be used for production, NewMed said.

Drilling is expected to begin in the first half of 2023.

NewMed has a 30% stake in Aphrodite, located about 170 km south of Limassol. Chevron (CVX.N) and Shell each have a 35% share.

The partners are examining development options, NewMed said, including connecting the field to existing facilities in the area or linking it to development plans for nearby assets in Egypt.

Cyprus expects gas field development plan by end of year - ASSOCIATED PRESS

July 21, 2022
MENELAOS HADJICOSTIS

NICOSIA, Cyprus (AP) — A plan to develop a sizeable natural gas field off Cyprus that could help the European Union find alternative energy sources to Russia will be ready by the end of the year, the east Mediterranean island nation’s energy minister said Thursday.

Energy Minister Natasa Pilides said another well is expected to be drilled at the Aphrodite field in the next few months and will be used to gather additional information about the deposit’s size and to extract gas at a later stage.

Initially discovered in 2011, the Aphrodite field is estimated to hold up to 4.4 trillion cubic feet of gas. Chevron, along with partners Dutch Shell and Israeli NewMed Energy, now own the drilling rights to the field.

Aphrodite sits close to the massive Leviathan gas field, which is also jointly operated by Chevron and NewMed.

Shell Completes Sale of Western Desert Assets in Egypt to Cheiron and Cairn - JOURNAL OF PETROLEUM TECHNOLOGY (JPT)

NEAG 1 in NE Abu El-Gharadig, Western Desert

September 26, 2021

Pat Davis Szymczak

Royal Dutch Shell has completed the sale of its upstream assets in Egypt’s Western Desert to a consortium of independent E&P operators focused on revitalizing mature oil and gas fields, Cheiron Petroleum Corporation and Cairn Energy, both UK-based.

Having received final government and regulatory approvals completing the sale, Shell said it will focus its Egyptian business on the offshore, including the West Delta Deep Marine (WDDM), the Harmattan Deep Project, and exploration acreage in seven new blocks in the Nile Delta, West Mediterranean, and the Red Sea, according to a 24 September news release.

Shell’s midstream focus will remain on its Egyptian LNG joint venture; downstream the company still retains Shell Lubricants Egypt.

Egypt Snubs LNG, Plans To Send Gas to Lebanon Via the Arab Gas Pipeline - JOURNAL OF PETROLEUM TECHNOLOGY

September 23, 2021

Pat Davis Szymczak

Egypt says it is stopping gas supplies to the Egypt Liquefied Natural Gas (ELNG) export terminal at Idku near Alexandria immediately and that it will supply gas to the Damietta LNG plant only until year end as it prepares to redirect surplus gas exports to Lebanon via the Arab Gas Pipeline.

Jordan’s Ministry of Energy and Mineral Resources announced in early September it would deliver Egyptian gas to Lebanon after oil ministers of nations responsible for the Arab Gas Pipeline (Egypt, Jordan, Syria, and Lebanon) met in Amman to agree on a regional response to Lebanon’s ongoing fuel and electricity crisis, local media reported.

The English language news site Egypttoday.com quoted Egyptian Minister Tarek El Molla as saying, “Egypt is working to speed up coordination for delivering Egyptian natural gas to Lebanon through Jordan and Syria.”

Lebanon is in a state of economic collapse that the World Bank has called one of the worst on record, and, because it lacks foreign currency to pay for energy imports, the country was forced to switch off its two main power plants in July for lack of fuel, plunging the country into a near total blackout.

Shell Strikes $926 Million Deal to Sell Oil Assets in Egyptian Desert - BLOOMBERG

March 9, 2021, 9:27 AM
Salma El Wardany and Elena Mazneva

• Shell divests concessions for up to $926m to Cairn, Cheiron
• Cairn in turn offloads U.K. stakes for at least $460 million

Cairn Energy Plc reshuffled its portfolio, selling $460 million of assets in the U.K. North Sea and buying projects in Egypt’s Western Desert from Royal Dutch Shell Plc.

Both deals, announced Tuesday and seen completing in the second half of 2021, follow a pickup in oil and gas acquisitions after 2020’s pandemic-driven slump. Cairn’s retreat from the North Sea comes after several other international producers have withdrawn from the aging region. Meanwhile its purchase in Egypt enables Shell to chalk up proceeds in an ongoing divestment program.

“Cairn needed to rejuvenate its investment case, and this move does that,” Al Stanton, an analyst at RBC Capital Markets, said in a note. “However, shareholders are faced with a steep learning curve” and Egyptian assets typically provide “limited oil-price leverage.”

The future of global gas demand - CYPRUS MAIL

September 6, 20202

Charles Ellinas

The future of global gas demand was the subject of the Global Gas Report 2020 (GGR) published last month by the International Gas Union (IGU), in collaboration with Bloomberg NEF (BNEF) and Italian gas company Snam.

In addition to reviewing 2019 performance, the report assesses the effect of Covid-19 on the gas industry in the first half of 2020 and analyses the drivers for recovery in the next few years. It also includes a special section on the role of hydrogen and the gas industry in the low-carbon transition, particularly on market potential and technological options and costs of hydrogen production, storage and transport.

Its main conclusion is that the disruption caused by Covid-19 is on the way to reduce gas consumption and LNG trade by 4% in 2020. This and abundant supply of gas have kept prices at historic lows.

But on the positive side, GGR points out that “abundant supply and continued cost-competitiveness, aided by a push for cleaner air, can lead to a recovery in demand to pre-Covid-19 levels in the next two years, as the global economy regains momentum.”

Carlyle, Cairn Energy-backed group among bidders for Shell’s Egypt assets-sources - REUTERS

JULY 15, 2020 / 4:25 PM

Hadeel Al Sayegh, Ron Bousso

DUBAI/LONDON, July 15 (Reuters) - Buyout firm Carlyle and a consortium backed by Cairn Energy are among the bidders for Royal Dutch Shell’s onshore Egyptian oil and gas assets, two sources with knowledge of the matter told Reuters.

Bids for the assets are now expected to be sharply lower than initial estimates of up to $1 billion due to a weaker outlook for global oil and gas prices, said the sources, declining to be named as the matter is not public.

Shell launched a process at the end of November to sell its onshore upstream assets in the Western Desert as it focuses on expanding its Egyptian offshore gas exploration.

US' Noble to adjust work schedule at Cyprus's Aphrodite gas project - PLATTS

29 Jun 2020 | 14:26 UTC London
Stuart Elliott, Editor: Alisdair Bowles

• Progress depends on gas demand, market conditions
• Analysts see more delays to Aphrodite development
• First gas, for supply to Egypt, was set for 2025

London — The development of Cyprus' maiden gas discovery Aphrodite is facing an uncertain future as operator Noble Energy looks to revise the timeline for work at the project.

Discovered in 2011, the development of the 4.1 Tcf field seemed to have finally picked up speed in November last year with the signing of a new gas exploitation agreement between the field partners and the Cypriot government.

A final investment decision by Noble and its partners Shell and Israel's Delek was expected to be taken in 2022, with first gas set to flow in 2025.

Noble hints at delay in plans for Aphrodite gas field - CYPRUS MAIL

June 16, 2020

Elias Hazou

Noble Energy, the primary concession holder on the Aphrodite gas field, has signalled they are putting on hold plans to develop and monetise the reservoir, while reiterating their commitment to the project.

In a statement provided to daily Politis, the US company said that tumbling commodity prices due to the economic fallout linked to the global coronavirus situation, have led them to “reconfigure” their work schedule in Cyprus as well.

While avoiding the term ‘delay,’ it could be inferred that Noble was hinting at exactly that.

“Reacting to the new state of play due to the Covid-19 pandemic and the drop in commodity prices, we are reconfiguring our work schedule in Cyprus, but we are keeping with our commitments to the Cypriot government,” the company said.

Cyprus must redirect its energy policy - CYPRUS MAIL

May 10, 2020

Charles Ellinas

The international oil and gas companies (IOCs) have finally confirmed postponement of planned drilling in Cyprus’ EEZ into 2021. It is understood that the energy minister is looking into extending Eni/Total’s contracts to facilitate this.

The press coverage that followed, stated that it is “important to note that the oil companies are not pulling out”, but “they have merely postponed their planned drilling in response to the many problems currently being faced.”

But is such a complacent view justified? Where is this going? Let’s look at the evolving facts.

Egypt's Tharwa Petroleum seeks to acquire 6 concession areas in 2020 - ZAWYA / MUBASHER

31 MARCH, 2020

Tharwa drilled eight exploratory and development wells in 2019

Cairo – Tharwa Petroleum Company is looking to obtain six concession areas in 2020 and enter into partnerships with major companies, including Total, ExxonMobil, Chevron, BP, and Shell, the company’s chairman Amr El-Leithy said.

The company also plans to drill seven exploratory and development wells this year, El-Leithy added in a statement released by the Ministry of Petroleum on Tuesday.

In 2019, Tharwa drilled eight exploratory and development wells, leading to higher output, he pointed out.

The average output at the company’s areas reached about 6,800 barrels of crude oil per day.

Oil and gas companies on the retreat - CYPRUS MAIL

March 29, 2020
Charles Ellinas

The combined effect of the massive decline in global oil and gas demand due to Covid-19 depressing the global economy, and the rapid drop in the oil price – due to unrestricted increase in production by Saudi Arabia and Russia and still high shale-oil production – are forcing the oil and gas companies on the retreat.

By Friday, Covid-19 had infected more than 585,000, resulting in over 27,000 deaths worldwide, and the numbers are still rising. It will probably last well into 2020, but it is difficult to say how long. The last Sars virus took more than eight months before it burned itself out. Covid-19 seems to be substantially more infectious than Sars. Its impact on what was already a weak global economy and oil and gas demand is expected to last into 2021.

Egypt agrees with five energy firms on exploration in Mediterranean - minister - ET ENERGY WORLD / REUTERS

February 16, 2020, 08:08 IST

CAIRO: Egypt has reached initial agreements with five major energy firms to explore for oil and gas in deep waters in off its western coast on the Mediterranean, the petroleum minister said, the first such deals in that offshore region.

The five companies are Royal Dutch Shell, Chevron , BP, Total and Exxon Mobil, said Tarek El Molla told Sky News Arabia TV on Saturday.

He said the exploration and production agreements spanned seven concessions and had been signed with major companies because of the scale of investment needed. Exploratory drilling in the area would start in early 2021, he said.

The discovery of the giant Mediterranean field of Zohr off the eastern coasts of Egypt by Italy's Eni in 2015 sparked renewed interest and investment in Egypt's energy industry.

Record Egyptian finds but gas glut beckons - CYPRUS MAIL

March 1, 2020

Charles Ellinas

Egypt had another successful year in 2019 and this was showcased at the country’s annual petroleum show, EGYPS-2020, held mid-February in Cairo.

But 2020 is turning out to be a pivotal, but challenging, year for the oil and natural gas industries worldwide and Egypt and the East Med are not immune to it.

Opening the conference, Petroleum Minister Tarek El Molla highlighted the successes of 2019, with the oil and gas sector contributing 25 per cent to Egypt’s gross domestic product.

A total of 29 international agreements were signed during EGYPS-2020, reflecting the great potential and promising opportunities of the Egyptian petroleum sector.